3 reasons thriving Komatsu still trails Caterpillar in market value

Japanese company looks to improve price hikes, financial leverage and inventory turnover

20240602N CAT Komatsu

(Source photos by Reuters, Nikkei)

KENSHO MOTOWAKI, Nikkei staff writer

TOKYO -- Komatsu is on a roll. The Japanese construction machinery maker has posted two straight years of record profits, while its share price recently hit an all-time high.

Yet U.S. rival Caterpillar still trades at a far higher multiple of book value. Komatsu is trading at 1.6 times book value, compared with Caterpillar's 9.6.

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